The Reserve Bank of Australia (RBA) holds its June meeting next week and is expected to reiterate that rates are unlikely to rise until 2024, two years after the RBNZ's projection.
"With the RBNZ set to become one of the first central banks in advanced economies to hike rates, we think that the New Zealand dollar will continue to strengthen."
Australian government bond futures eased too, with the three-year bond contract off 1 tick at 99.74 ticks, implying yield of 0.25% when the cash rate is at 0.1% now.
The U.S. Dollar Currency Index, which measures the greenback against a basket of six currencies, was 0.181% lower at 92.473. The index fell as low as 92.134 earlier in the session.
The dollar index, a measure of the greenback's value against six other major currencies, hit as high as 92.919, its strongest level since November last year.
The yen rose against the euro and the antipodean currencies on speculation that Japanese investors who have been buying the lira recently for its high rates will cut losses and close out their positions.
"A key driver (for the Kiwi) is expected to be a continuation of the global recovery which should see commodity currencies outperform," Westpac analysts said in a note.
The local share price index futures fell 0.4%, a 24.1-point discount to the underlying S&P/ASX 200 index close. The benchmark ended 0.8% higher on Tuesday.
The dollar was little changed at 109.170 yen early in Tuesday's Asian session, after rising as high as 109.365 overnight. The BOJ begins a two-day policy meeting on Thursday, along with an extensive policy review.
The New Zealand dollar dipped to $0.7150, and looked in danger of again testing support at $0.7105. Resistance lies at $0.7195, with more up at $0.7270.